Honda Motor Company of Japan predicts a 2.8% increase in operating profit for this fiscal year. It exceeded experts’ projections in the fourth quarter due to robust sales growth in the US, offsetting a drop in China.
Japan’s second-largest automaker by volume predicted its full-year operating profit to reach 1.42 trillion yen ($9.13 billion). This exceeds the average profit prediction of 1.39 trillion yen based on a survey of 22 experts conducted by LSEG.
Operating profit for the three months ended March 31 increased by more than six times compared to the same period last year, reaching 305.6 billion yen. This figure significantly exceeded the analysts’ average of 248.3 billion yen.
In the U.S., the automaker’s largest overseas market, sales increased by 17% over that time to around 378,000 vehicles. However, from January to March, its sales in China decreased by about 6%, amounting to over 207,000 automobiles.
In China, the largest auto market globally, Honda has battled against more agile and quick-moving local competitors. These competitors have drawn Chinese consumers in with their affordable, high-tech electric cars.
Last month, Honda, a latecomer to the EV market, announced its intention to establish an EV production base in Ontario, Canada. Additionally, it plans to introduce six EV models under the Ye brand in China by the year 2027.
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